Who to contact
ASRS 20/20 rule
- Annie Terhaar
- 928-523-1656
- Annie.Terhaar@nau.edu
29-hour rule
- Amy Ulibarri
- 928-523-0002
- Amy.Ulibarri@nau.edu.
Hiring practices
29-Hour Work Rule for Temporary Employees
NAU uses the 29-hour work rule to manage the hours worked by temporary employees to assure compliance with The Affordable Care Act (ACA), also known as health care reform. Under the ACA employers should offer affordable health care coverage to fulltime employees, which are defined as an employee who worked 30 hours or more in their previous measurement period.
Variable hour employees
The following type of employees, called variable hour employees under the ACA, could become eligible for medical benefits based on the hours that they work:
- Part-time temporary
- Part-time faculty
- Student employees
- Graduate assistants
Measurement Periods
A measurement period is a period over which the average number of hours a variable hour employee is measured. These are the types of measurement periods:
-
Initial Measurement Period (IMP) Tab Open
-
Standard Measurement Period (SMP) Tab Closed
-
Dual Measurement Period Tab Closed
Initial Measurement Period (IMP) Accordion Open
Initial Measurement Period is a 12-month period starting on the employee’s initial service date.
The Initial Measurement Period (IMP) is for employees who:
- Hired before or after the Standard Measurement Period (SMP) already began, OR,
- Has had a break of service of 26 weeks or longer, OR,
- Has had a break in service of at least 4 weeks and longer than their preceding employment period.
A variable hour employee working an average of at least 30 hours per week at the end of their IMP is deemed full-time and will be offered medical benefits during their stability period which is from January 1st through December 31st of the upcoming calendar year.
If the employee has a break in service that is 26 weeks or longer, the stability period ends at the end of the 26th week.
Standard Measurement Period (SMP) Accordion Closed
Standard Measurement Period is 12-month period starting mid-October each year.
- The Standard Measurement Period covers existing (or continuing) variable hour employees.
- The SMP starts in mid-October of one year and ends mid-October of the following year.
A variable hour employee working an average of at least 30 hours per week at the end of their SMP is deemed full-time and will be offered medical benefits during their stability period which is from January 1st through December 31st of the upcoming calendar year.
If the employee has a break in service that is 26 weeks or longer, the stability period ends at the end of the 26th week.
Dual Measurement Period Accordion Closed
The goal is to have all variable hour employees on the SMP. Therefore, variable hour employees who are being measured on the IMP will eventually be measured on the SMP to align them as “existing employees”.
- Until the employee completes their Initial Measurement Period, the IMP will remain the primary measurement period for purposes of calculating the weekly average hours.
- At the closure of the employee’s IMP, they will automatically drop onto the upcoming SMP.
Breaks in Service
A break in service is a period of time when a variable hour employee is not working during their standard or initial measurement period and is not credited with any hours of service. The duration of the break in service determines the impact on the applicable measurement period.
The break in service rules are complicated, because we are an educational institution and even some regular employees do not work year-round. The most important thing to remember is an employee with a break in service greater than 26 weeks is treated as a new hire with a new initial measurement period.
Rule to remember
- If a break is greater than 26 weeks, then the employee is treated as a new hire with a new initial measurement period.
- If a break in service is less than 26 weeks, but more than 4 weeks AND the duration of the break is GREATER than the most recent period of employment, then the employee is treated as a new hire with a new initial measurement period.
- If a break is less than 26 weeks, but more than 4 weeks AND the duration of the break is LESS than the most recent period of employment then the employees continues the current measurement period without break in service factored into the average. Even though the employee has not worked, the average number of hours worked over the 90 DAYS PRIOR to their break in service is used to calculate their average hours.
For example, an employee with 18 months of service has a 2-month break in service during the measurement period. When calculating the average hours for the purposes of the ACA, the average hours worked in the 90 days prior to the 2-month break will be used.
- If the break is 4 weeks or less, then the employee continues the current measurement period. The average hours are calculated as a simple average, including zero hours worked during the weeks of the break.
Benefit eligible employee rehired as a temporary employee
When a regular full-time benefit eligible employee separates from employment (resigns, retires, layoff, etc.) and then is rehired into a variable hour position (part-time temporary or part-time faculty) within six months of the separation, they may be considered full-time definition under the ACA rule if they worked 30 hours or more per week for the during their last measurement period.
If the employee is eligible for medical coverage human Resources will contact both the employee and the department.
ASRS implications
If the employee terminates their benefit eligible position and they were contributing to ASRS during the fiscal year, then they must continue to contribute to ASRS along with the department in the new part-time temporary position up through the end of the current fiscal year. The ASRS week count will reset on July 1 for the part-time temporary employee.
Best practices to avoid exceeding the 29-hour work rule
First, submit a termination ePAR for employees who have not received a paycheck for at least three pay periods to avoid inflating the employees’ weekly average hours.
Planning is the key!
- Please note the ASRS 20/20 rule and the ACA 29 hours rule are two separate rules but an employee could meet eligibility for both.
- Communicate and collaborate with other NAU departments that are employing the same employee to ensure that the employee does not exceed the threshold/week count.
- To comply with 29-hour work rule, part-time faculty may teach up to eleven credit hours during a regular semester (but could exceed the ASRS 20/20 rule!)
- Part-time faculty hours are calculated based on the beginning of the pay period containing the course start date and the end of the pay period containing the course end date.
Best hiring practices for supervisors:
Understand the implications of hiring a former NAU benefit eligible employee or a variable hour employee who works with multiple departments before entertaining an employment offer. When interviewing you can ask preliminary questions as long as they do not influence the interview or selection process.
- Have you worked for NAU in the past? If so, when did you separate from your employment with NAU?
- What was your employment status in your previously held position with NAU?
- Do you currently work for another NAU department? If so, what are your commitments to that position?
- Were you ever placed by a temporary agency to do work for NAU?
- Hiring through a temp agency is sometimes a good option, but the ACA rules also apply to the temp agency, so employing a temp for 30 hours or more for long periods of time, may qualify that person for benefits, a cost that your department will be responsible for paying.